JOHN E. QUINN 

Executive Director 

BY HAND 

June 30, 2004 

Mr. Robert Donaldson 

Business Compliance Division Bureau of Waste Prevention 

Department of Environmental Protection 

One Winter St. 

Boston, MA 02108 

Dear Mr. Donaldson, 

Please accept these written comments in response to the published proposed revisions to the 

Massachusetts Air Pollution Control Regulations - Engines and Combustion Turbines (amendments to 

310 CMR 7.00 and 310 CMR 70.00). 

The Massachusetts Petroleum Council is a division of the American Petroleum Institute, a national trade 

organization representing most of the major petroleum refiners. As such, we will limit our comments to 

provisions of the proposed regulations related to fuels specifications only, namely amendments to 310 

CMR 7.05 U Fuels All Districts and 310 CMR 7.26 Industry Performance Standards. 

FUEL AVAILABILITY/COST CONCERNS 

As proposed, 310 CMR 7.00 attempts to piggyback on the federal highway diesel regulations which 

require that, beginning in 2006, 80 percent of highway diesel have 15 ppm sulfur, while the remaining 20 

percent can be as high as 500 ppm sulfur. By 2010, all highway diesel must be 15 ppm sulfur. While the 

federal non-road (i.e. construction and farm equipment) regulations published this week do not address 

stationary sources such as those proposed in 310 CMR 7.00, non-road diesel requirements will mandate 

that all diesel used for this purpose must be 500 ppm sulfur in 2007. By 2010 all non-road diesel (except 

for locomotives and marine applications) must be 15 ppm and by 2012 all non-road diesel must be 15 

ppm sulfur. 

We strongly believe that the Department should require the use of non-road instead of highway diesel fuel 

for the applications regulated under 310 CMR 7.00. The proposal should reference the federal nonroad 

diesel rule, published on 6/29 (69 Fed. Reg. 38957 to 39273, June 19, 2004). * Requiring non-road diesel 

will result in an approximate 90 percent reduction of sulfur from current levels (which can be as high as 

5000 ppm). In addition, 15 ppm diesel, or Ultra Low Sulfur Diesel (ULSD), is needed on engines that 

incorporate after-treatment of exhaust. It is uncertain whether the small engines regulated under 310 

CMR 7.00 will gain any additional benefits from ULSD since these engines do not have after-treatment. 

We believe that it is not necessary to subject the users of these engines to the extra costs associated with 

ULSD for a relatively small incremental reduction in sulfur oxide emissions. 

MASSACHUSETTS PETROLEUM COUNCIL 

A DIVISION OF AMERICAN PETROLEUM INSTITUTE 

11 BEACON STREET BOSTON, MASSACHUSETTS 02108 STEPHEN C. DODGE 

Telephone (617) 227-4227 Fax (617) 227-5743 Associate Director 
Because of storage issues that may vary between different regions of the state, and because of differences 

in the method of delivery between highway diesel (usually delivered in large tankers destined for delivery 

to a single service station or UST) and non-road diesel (usually delivered by means of a small tank truck 

such as the type used for home heating oil deliveries), it may be difficult for users to secure an available 

and affordable supply of ULSD highway fuel for use in small, sometimes remotely located engines. Just 

because ULSD will "be available" for highway use in 2006, does not necessarily mean it will be 

accessible and affordable for stationary, off-road use. We believe the requirement currently proposed in 

310 CMR 7.00 could tax the ability of refiners, suppliers and end users to supply and obtain adequate 

volumes of compliant USLD, particularly in the more remote areas of the state. 

TAXATION ISSUES 

As you may be aware, as mandated by federal law, distillate fuels that are used for nontaxable purposes 

(e.g. off road use, heating fuel, stationary applications such as those regulated under 310 CMR 7.00) are 

dyed red. Diesel fuels used for highway use are undyed. It in unlawful to used dyed fuel for highway use. 

The federal tax is 24.4 cents per gallon and the Massachusetts tax is 23.5 cents per gallon for a total of 

47.9 cents per gallon collected and remitted by distributors on every taxable gallon of fuel sold. As 

proposed, 310 CMR 7.00 would require owners/operators of the small engines regulated under this 

section to purchase dyed fuel (since it will most likely be the only ULSD fuel available in 2006) and pay 

the additional almost 50 cents per gallon tax. Users would then have to seek reimbursement from the 

Department of Revenue and IRS for the taxes paid. We believe this to be an unintended and overly 

burdensome consequence of this proposal. This issue is another reason why it makes sense for the 

Department to piggyback the federal non-road diesel regulations which will ensure that adequate supplies 

of non-taxable, low sulfur fuel are available for the regulated uses under 310 CMR 7.00 

In conclusion, we believe that the Department has not demonstrated the need for controls on these 

engines, especially given the uncertain number and small operational requirements of the engines 

regulated until this proposal. There are no PM nonattainment areas in the entire state and the 

implementation of the federal highway and non-road diesel regulations now established are likely to 

reduce particulates significantly beginning in mid-2006. However, if the Department feels it is necessary 

to regulate emissions from these small and largely undocumented sources, we strongly suggest the 

Department mandate the use of low sulfur, non-road diesel fuel that will be, by 2007, readily available 

and less expensive. 

We appreciate this opportunity to offer these comments. Please feel free to contact our office if we can 

provide any additional information regarding this proposal. 

Sincerely, 

Stephen C. Dodge 

i